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State Regulations

Workers Comp Requirements

Workers compensation coverage limits and basic protections are standardized across the country, but Workers Comp requirements are regulated at the state level. Each state has unique rules that apply to businesses.  Workers Comp requirements can vary from a 5 employee threshold to only 1 employee or owner triggering the legal mandate to purchase coverage.

In many cases, you may not be legally required to carry it, but the practical realities of not having it may mean that other companies or customers will refuse to do business with you.  It’s not a perfect system by any stretch- but we’re here to at least help you understand it and navigate it to minimize your cost. Here is a list of workers comp requirements and rules by state:


Alabama

State Exemption available? NO

Alabama does not require workers compensation coverage, however, your customers or General Contractors may still require that you purchase coverage in order to protect them from claims. If you purchase a policy, officers/owners of a corporation do count as employees- and can choose whether or not to coverage themselves. Subcontractors don’t count as employees AS LONG AS they meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your Alabama Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage.

  • $41,300 for Sole Proprietors and Partners
  • $41,600 Minimum and $166,400 Maximum for Officers
Read More

Arkansas

State Exemption available? YES

Click Here for Exemption Registration

Arkansas requires workers compensation coverage if you have 3 or more “regular” employees. That includes part time or full time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 2 owners and 1 employee must carry workers comp. Subcontractors don’t count as employees AS LONG AS they meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your Arkansas Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage.

  • $38,500 for Sole Proprietors, Partners, and Members of an LLC
  • $39,000 Minimum and $156,000 Maximum for Officers
Read More

Florida

State Exemption available? NO

Florida requires workers compensation coverage if you have 1 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 1 owner must carry workers comp.

Florida also counts employees of your subcontractors- which basically means that if you use subs, you must carry workers comp since it’s impossible to know if/when your subs have employees. Subcontractors may actually count as “statutory employees” of your business if they don’t meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.
When calculating your Florida Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage:

  • $43,000 for Sole Proprietors and Partners
  • $20,800 Minimum and $130,000 Maximum for Officers/Members of a Corp or LLC
Read More

Georgia

State Exemption available? NO

Georgia requires workers compensation coverage if you have 3 or more “regular” employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 2 owners and 1 employee must carry workers comp. Subcontractors don’t count as employees AS LONG AS they meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your Georgia Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage.

  • $46,800 for Sole Proprietors
  • $47,500 Minimum and $192,400 Maximum for Officers
Read More

Kansas

State Exemption available? YES (Roofers only)

Click Here for Exemption Registration

Kansas requires workers compensation coverage if you have 1 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 1 owner must carry workers comp.

Kansas also counts employees of your subcontractors- which basically means that if you use subs, you must carry workers comp since it’s impossible to know if/when your subs have employees. Subcontractors may actually count as “statutory employees” of your business if they don’t meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your Kansas Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage:

  • $41,200 for Sole Proprietors, Partners, and Members of an LLC
  • $41,600 Minimum and $166,400 Maximum for Officers of a Corp
Read More

Louisiana

State Exemption available? NO

Louisiana requires workers compensation coverage if you have 1 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 1 owner must carry workers comp.

Louisiana also counts employees of your subcontractors- which basically means that if you
use subs, you must carry workers comp since it’s impossible to know if/when your subs have employees. Subcontractors may actually count as “statutory
employees” of your business if they don’t meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your Louisiana Workers Comp Quotes, keep in mind the following
amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage:

  • $43,700 for Sole Proprietors and Partners
  • $44,200 Minimum and $130,000 Maximum for Officers/Members of a Corp or LLC
Read More

North Carolina

State Exemption available? NO

North Carolina requires workers compensation coverage if you have 3 or more employees. That includes Part Time or Full Time laborers and owners/officers of a corporation. Sole Proprietors and LLC members DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 2 owners and 1 employee must carry workers comp. Subcontractors don’t count as employees AS LONG AS they meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your North Carolina Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage.

  • $43,500 for Sole Proprietors, Partners, and Members
  • $44,200 Minimum and $88,400 Maximum for Officers
Read More

Pennsylvania

State Exemption available? NO

Pennsylvania requires workers compensation coverage if you have 1 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 1 owner must carry workers comp. Pennsylvania also counts employees of your subcontractors- which basically means that if you use subs, you must carry workers comp since it’s impossible to know if/when your subs have employees. Subcontractors may actually count as “statutory employees” of your business if they don’t meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.
When calculating your Pennsylvania Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage:

  • $39,000 Minimum and $122,200 Maximum for Sole Proprietors, Partners, and Officers/Members of a Corp or LLC
Read More

South Carolina

State Exemption available? NO

South Carolina requires workers compensation coverage if you have 4 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 2 owners and 2 employees must carry workers comp. Subcontractors don’t count as employees AS LONG AS they meet some or all of the following:

  1. They have a separate business entity.
  2. The have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your South Carolina Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage.

  • $39,800 for Sole Proprietors, Member, and Partners
  • $20,800 Minimum and $161,200 Maximum for Officers
Read More

Tennessee

State Exemption available? YES

Clich Here for Exemption Registration

Tennessee divides their workers comp rules into 2 parts:

  1. Construction/Mining
  2. Everyone else

ALL CONSTRUCTION AND MINING INDUSTRY BUSINESSES ARE REQUIRED TO CARRY WORKERS COMP.

Even if you are by yourself with no other employees or subs. The only way to avoid it is to file an exemption with the state through the state exemption registry process. This must be done for each owner/officer. If you have employees or subs, you still have to purchase a policy- but you can and must still register the exemption for any owner who chooses not to be included. Construction includes virtually all service businesses that perform work on buildings- including low hazard occupations like cleaners and cable installers.

OTHER INDUSTRIES

All businesses except construction and mining industries are required to carry workers compensation coverage if there are 5 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 2 owners and 1 employee must carry workers comp. Subcontractors don’t count as employees AS LONG AS they meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your Tennessee Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage.

Non-Construction

  • $44,100 for Sole Proprietors, Partners, and Members
  • $44,200 Minimum and $176,800 Maximum for Officers

Construction

  • $20,800 Minmum for all sole proprietors, partners, officers, members
  • $64,800 Maximum for all sole proprietors, partners, members
  • $65,000 Maximum for all officers
Read More

Virginia

State Exemption available? NO

Virginia requires workers compensation coverage if you have 2 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 1 owners and 1 employee must carry workers comp.

Virginia also counts employees of your subcontractors– which basically means that if you use subs, you must carry workers comp since it’s impossible to know if/when your subs have employees. Subcontractors may actually count as “statutory employees” of your business if they don’t meet some or all of the following:

  1. They have a separate business entity.
  2. They have their own workers comp insurance.
  3. They can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your Virginia Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage.

  • $50,300 for Sole Proprietors, Members, and Partners
  • $26,000 Minimum and $98,800 Maximum for Officers
Read More

West Virginia

State Exemption available? NO

West Virginia requires workers compensation coverage if you have 1 or more employees. That includes Part Time or Full Time casual laborers and owners/officers of a corporation. Sole Proprietors DO NOT count as employees, but can still choose to be covered. Officers/Owners of a corporation do count as employees- even if they choose not to cover themselves. In other words, a corporation with 1 owner must carry workers comp.

West Virginia also counts employees of your subcontractors- which basically means that if you use subs, you must carry workers comp since it’s impossible to know if/when your subs have employees. Subcontractors may actually count as “statutory employees” of your business if they don’t meet some or all of the following:

  1. The subcontractor has a separate business entity.
  2. They have their own workers comp insurance.
  3. The subcontractor can choose when to come to work.
  4. They provide their own tools and transportation.

If any of these items do not apply, the state may consider them to be employees for workers comp purposes regardless of whether you give them a 1099.

When calculating your West Virginia Workers Comp Quotes, keep in mind the following amounts if you choose to include any owners/officers in the coverage. Even if owners don’t draw a paycheck, these are the payroll amounts that will be counted for each owner who wants coverage:

  • $39,500 for Sole Proprietors and Partners
  • $39,000 Minimum and $156,000 Maximum for Officers/Members of a Corp or LLC
Read More